The New Marketing Strategy for Coca-Cola (China): COOPERATION WITH I.T. COMPANIES

Essay by edcylUniversity, Bachelor'sB+, March 2008

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1. Introduction of Coca-Cola in China. Coca-Cola Company is the biggest soft drink company in the world and famous for its classic coke. It has over 100 years’ of history and its business scope covers more than 200 countries. The extended experience and abundant resources have made the brand a great success. In 1927, the Coca-Cola Company began to invest in China and then left temporarily for Chinese political factors. In 1979, it returned after China’s reform and opening to the outside world. By now it has broken in China’s market for 25 years after returning. Its investment has exceeded $1,200,000,000 and it has set up 34 companies and 28 factories.

2. Why Cooperate With I.T. Companies2.1. The disadvantageous situation for Coca-Cola. With time going, Coca-Cola now seems somehow not very fashionable. There are only a few tastes which more or less are the same for customers to choose from.

However, its competitors such as Pepsi, Jianlibao and Nongfu Spring have offered a lot of new drinks with varieties of tastes and functions. For example, Kang Shifu, a very large Chinese food and drink producer, has produced some tea drinks, which suit Chinese people’s taste very much.

And during these years, the market of carbonated drink in China was in recession. The sales volume of carbonated drink within the first ten months in 2004 in Shanghai has decreased by 13.4%, compared with the sales volume in the same period of the year before. With a large share of Chinese drink market, Coca-Cola were certainly attacked.

On the other hand, the traditional ways of advertisement such as news papers advertisements, hoardings, TV shows, are unable to communicate with customers adequately. Their abilities to attract the youth have decreased as the youth are now more dependent on the Internet. Furthermore, the competitors...